At Nikko Chemicals and the NIKKOL GROUP, our core philosophy is built upon the concept of Reliability, Safety and Stable Supply. Even amidst a global crisis, we believe it is our responsibility to share highly transparent information to ensure our customers have the clearest possible understanding of the situation.
To provide a more specific look at our proactive measures, we have summarized the details of our current supply chain management and Business Continuity Plan (BCP) below.
1. Rigorous Internal Monitoring and Governance
We have established a multi-layered communication structure to ensure that information from the front lines of global procurement reaches management and our customers immediately.
- Weekly Strategic Meetings: Every Monday, the Production Management Department, Global Purchasing Department, and the PSI (Production, Sales, and Inventory) Coordination Department convene to analyze the latest supply chain shifts and adjust procurement strategies in real-time.
- Cross-Functional Collaboration: Dedicated communication channels have been established between each business unit and the NIKKOL GROUP’s primary manufacturing sites (Nippon Surfactant’s factories at Nasu and Utsunomiya). We formulate optimal production plans based on raw material availability to ensure stable supply.
2. Strategic Procurement of Raw Materials and Solvents
Addressing the uncertainty surrounding the supply of petroleum-derived derivatives—specifically various industrial solvents—is our highest priority. We are navigating these constraints through aggressive diversification.
- New Global Sourcing: For key solvents, we are working to secure robust new procurement routes from diverse international markets, moving beyond a reliance on traditional domestic suppliers.
- Evaluation of Alternative Grades: We are currently evaluating multiple “new supply sources” for solvents, including bio-based and CO-2-derived options. This aim is to build a system that minimizes the impact on our main product lines even if supply from specific regions is disrupted. Furthermore, these new solvents undergo rigorous verification to ensure that high quality standards and global regulatory certifications are maintained.
3. Supply Stabilization and Order Management
During periods of potential crisis or shortage, we must protect the interests of all our customers. To ensure continuous and fair delivery to all business partners, we manage inventory levels meticulously and may temporarily prioritize orders based on actual current demand.
- Allocation System: The PSI Coordination Department scrutinizes orders that exceed typical volumes. We manage these on a case-by-case basis to prevent inventory depletion and to ensure a continuous, stable supply for all partners.
- Proactive Coordination: We maintain an active dialogue with customers regarding the shipping status of restricted items, striving to provide information as early as possible so that customers can adjust their production plans accordingly.
4. BCP for Logistics and Auxiliary Materials
The current crisis may affect not only chemical raw materials but also the containers and packaging materials required for transport.
- Packaging Material Countermeasures: We have implemented BCP measures for scenarios involving shortages of plastic materials (such as bottle caps and inner plastic bags). This includes exploring alternatives, such as switching from plastic bags to paper bags for flake-form products etc. Additionally, we are preemptively increasing safety stock for plastic sample bottles and other auxiliary materials to prepare for future price spikes or shortages.
- Addressing Logistics Impact: We are closely monitoring delivery delays and cost fluctuations in import/export and domestic transportation.
Our Commitment
We pledge to provide regular updates as the situation evolves. While the future remains difficult to predict, our top priority is to minimize the impact on your production plans. We will continue to share the latest available information with full transparency and work alongside you to find the best possible solutions.
April 9, 2026